Bloomberg consults on BSBY cessation
Credit-sensitive Libor replacement faces 12-month run-off after damning Iosco verdict
Bloomberg is consulting on a plan to shut down its short-term bank yield index, known as BSBY, after an international standard-setter warned in July that credit-sensitive alternatives to the secured overnight financing rate (SOFR) do not meet global index standards.
In a statement issued today (September 13), the index provider requested feedback on a proposal to cease publishing the benchmark following a review of commercial opportunities.
“We designed BSBY as a cost-of-funding benchmark for
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